Pretoria - The Public Investment Corporation’s (PIC) investment strategy is racist and favours white-owned and controlled companies at the expense of firms started and managed by black entrepreneurs.
This is according to businessman Dr Iqbal Survé, who is Executive Chairman of Sekunjalo Group and a shareholder in companies including Ayo Technology Solutions and Independent Media.
Testifying before the Mpati Commission of Inquiry into allegations of impropriety at the PIC on Tuesday, Survé said the state asset manager had spent a fraction of its R1.6 trillion investment in Johannesburg Stock Exchange (JSE) listed firms on black companies.
By last year, Survé maintained, the market capitalisation of 200 companies on the JSE was R12 trillion, and the PIC’s investment R1.6 trillion.
“I venture to suggest that companies started by black entrepreneurs that are black-owned and black managed with black beneficiaries, do not have more than a few R100 billion of the total market capitalisation of R12 trillion of the JSE,” said Survé.